HC Deb 24 October 2001 vol 373 cc297-8W
15. Mr. Reed

To ask the Secretary of State for International Development what progress she has made in reducing the debts owed by the poorest countries to G7 countries. [6127]

Clare Short

The UK has encouraged other donors, including our G7 partners to provide substantial relief on their bilateral debts. All the G7 countries are now providing 100 per cent. relief on their bilateral debts for countries that have qualified for relief under the heavily indebted poor countries (HIPC) initiative.

The UK Government go further than is required under the HIPC and provide 100 per cent. debt relief to countries when they qualify for HIPC relief. The UK Government have also announced that they would hold all debt payments received from HIPC countries in trust, and return those payments to countries when they qualify for HIPC relief. The policy covers all debts owed by Governments in these countries to ECGD and CDC, freeing up more resources for poverty reduction.

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